Tag: buy

Baidu ended the year with a 32 percent loss, while Tencent was down 23 percent, and Alibaba dropped 21 percent. And it’s Tencent that’s flashing a buy signal, says Craig Johnson, chief market technician at Piper Jaffray. “If I look at the chart of Tencent, here’s a stock that’s traded off meaningfully. A key technical indicator, its moving average convergence divergence (MACD), is also suggesting a bullish lean to the stock, says Johnson. A stock’s MACD demonstrates the correlation between a 26-

Even with the U.S.-China trade war still raging, Chinese stocks are on fire.

Increasing trade tensions between the U.S. and China through the back-half of 2018 took a sledgehammer to Chinese shares. Baidu ended the year with a 32 percent loss, while Tencent was down 23 percent, and Alibaba dropped 21 percent.

However, the FXI China large-cap ETF has surged 7 percent in the past three months, while U.S.-listed China-based stocks such as Baidu, Alibaba, Tencent and Sina have rallied by at least 8 percent to begin 2019. And it’s Tencent that’s flashing a buy signal, says Craig Johnson, chief market technician at Piper Jaffray.

“There’s certainly some opportunities to trade here,” Johnson said on CNBC’s “Trading Nation” on Friday. “If I look at the chart of Tencent, here’s a stock that’s traded off meaningfully. We’ve now just reversed the downtrend.”

Tencent had plummeted 47 percent from its January peak last year to its trough last October. Since that bottom, it has rallied 35 percent to four-month highs.

A key technical indicator, its moving average convergence divergence (MACD), is also suggesting a bullish lean to the stock, says Johnson. A stock’s MACD demonstrates the correlation between a 26-period exponential moving average and a 12-period exponential moving average. When measured against a baseline, the indicator can suggest bullish or bearish momentum.

“When we’ve seen a MACD buy signal happen like we have right here, we’ve seen that 30 days later that the stock is typically up almost 13 percent,” Johnson explained. “This would be one we’d be buying.”

The stock market’s positive response to a report that U.S. officials were considering lifting tariffs on China to get a trade deal was telling, but it wasn’t necessarily good, CNBC’s Jim Cramer said Thursday. “Stocks that had been crushed on Chinese worries roared higher like this arrangement was already a done deal” despite the report being anonymously sourced, Cramer noted. “Even when we got contrary reports later in the session that perhaps there might be no deal, these stocks held onto most

The stock market’s positive response to a report that U.S. officials were considering lifting tariffs on China to get a trade deal was telling, but it wasn’t necessarily good, CNBC’s Jim Cramer said Thursday.

“Stocks that had been crushed on Chinese worries roared higher like this arrangement was already a done deal” despite the report being anonymously sourced, Cramer noted. “Even when we got contrary reports later in the session that perhaps there might be no deal, these stocks held onto most of their gains.”

So, while the market’s optimism can make you money, Cramer wouldn’t try to build a strategy around trade talks, especially with all the conflicting reports.

“I think it’s a sucker’s game to try to predict anything that goes on in Washington,” the “Mad Money” host said. “It’s pure chaos down there right now.”

Still, the late-2018 breakdown left the market so undervalued that “it feels dangerous not to buy stocks” at these levels, even if their catalysts are “nothing to write home about,” Cramer acknowledged.

“When you see this kind of positive action, you need to recognize what’s driving it. In the fourth quarter, stocks got way too cheap, and that overreaction to the downside has created incredible values that give investors a sense of certainty — they know they won’t be blown out if they buy something because there’s only so much much downside from these levels,” he explained. “When you have that sense of certainty, it’s very easy to pull the trigger and buy, which is why 2019 is turning out to be a much better year than many investors expected.”

The stock would need to pull back to one key level before it can roar back to records, though, says Todd Gordon, founder of TradingAnalysis.com. “I can’t wait to buy it in a pullback and I hope I get it back towards around $330 to $325. I do hope we hit that oversold pullback in order to take us to new highs,” Gordon told CNBC’s “Trading Nation” on Thursday. That swing to the downside could come as soon as Friday given the high potential for volatile swings following earnings, says Gordon. A mov

It has rallied more than 30 percent in January in the best performance of a FANG stock by a mile.

The stock would need to pull back to one key level before it can roar back to records, though, says Todd Gordon, founder of TradingAnalysis.com.

“I can’t wait to buy it in a pullback and I hope I get it back towards around $330 to $325. I do hope we hit that oversold pullback in order to take us to new highs,” Gordon told CNBC’s “Trading Nation” on Thursday. “It’s so extended here. You can’t buy it, it’s hard to sell it so that’s why I like trading options right now.”

That range has acted as resistance since Netflix last hit a low of $310 in August 2018. It broke firmly above it this week. A drop back down to $325 represents an 8 percent selloff.

That swing to the downside could come as soon as Friday given the high potential for volatile swings following earnings, says Gordon. The options market is expecting a $27 move higher or lower. A move that large to the downside would take Netflix prices down to Gordon’s $325 a share buy signal.

Mark Tepper, president of Strategic Wealth Partners, is a long-term bull on Netflix, but its outsized move in recent weeks has him nervous.

“I would be a seller of this thing ahead of earnings. It’s up 50 percent since Christmas Eve so I think a lot of the good news has already been priced in,” Tepper said on “Trading Nation” on Thursday.

The company’s announcement of a price hike days before its earnings release also has Tepper concerned.

“The timing of that price hike strikes me as very, very odd. Rolling that out a few days before earnings has me wondering. It has me concerned that they might underwhelm us on subscriber growth,” he explained.

Netflix said on Tuesday that it would raise prices for its subscription plans. The most popular plan will now cost $13 a month, up from $11, in what was its largest increase ever.

UBS initiated its rating for CVS Health at buy on Thursday, saying the opportunity is “too good to pass up.” “The wall of worry around CVS’ 2019 earnings guide and concerns around the timing of the next positive catalyst have pushed CVS stock down to where the risk-reward is very appealing,” the bank’s analyst Kevin Caliendo said in a note on Thursday.

UBS initiated its rating for CVS Health at buy on Thursday, saying the opportunity is “too good to pass up.”

“The wall of worry around CVS’ 2019 earnings guide and concerns around the timing of the next positive catalyst have pushed CVS stock down to where the risk-reward is very appealing,” the bank’s analyst Kevin Caliendo said in a note on Thursday.

In some popular U.S. cities, such as San Francisco, the median home value is well over $1 million. But in the scenic Italian town of Sambuca, located in western Sicily, you can buy a home for one euro, or about $1.15. The properties range in size from about 430- to 1,610 square feet, so they’re on the small side, but most come with private grotto access. Sambuca, also known as the City of Splendor, was a nominee in 2016 Italy’s Most Beautiful Towns contest. It’s silent and peaceful, an idyllic r

In some popular U.S. cities, such as San Francisco, the median home value is well over $1 million. But in the scenic Italian town of Sambuca, located in western Sicily, you can buy a home for one euro, or about $1.15.

Residents have fled to larger cities in recent years, and local officials have come up with a plan to sell dozens of homes for virtually nothing in the hope of repopulating and reviving the rural town. The properties range in size from about 430- to 1,610 square feet, so they’re on the small side, but most come with private grotto access.

There is a catch, though: If you purchase one of the houses, you must invest €15,000 ($17,100 USD) in renovations over the course of three years, since many of the properties were abandoned and are cluttered with broken stones and old furniture. You must also put down a security deposit of €5,000 ($5,700 USD).

So in actuality you’ll need to have more like $22,801 at the ready. Still, that’s not a bad deal.

Sambuca, also known as the City of Splendor, was a nominee in 2016 Italy’s Most Beautiful Towns contest.

Walking the streets you’ll find a mesh of baroque and Arab architectural styles. Tour guides can lead you through the “sunken city,” a labyrinth of underground sandstone passageways. Just watch out for ghosts. It’s rumored that spirits of slaughtered Saracen soldiers haunt the caves at night.

Fossil is selling $40 million of smartwatch technology to Google, the company announced Thursday. Shares of Fossil jumped about 8 percent on the news. Fossil is one of the primary brands that continues to build smartwatches that run Google’s Wear OS software, which competes with the Apple Watch but has struggled to gain mass adoption among consumers. But Fossil said that smartwatches are its fastest-growing category. Fossil said the transaction is expected to close in January.

Fossil is selling $40 million of smartwatch technology to Google, the company announced Thursday.

Shares of Fossil jumped about 8 percent on the news.

Fossil is one of the primary brands that continues to build smartwatches that run Google’s Wear OS software, which competes with the Apple Watch but has struggled to gain mass adoption among consumers. But Fossil said that smartwatches are its fastest-growing category.

“The addition of Fossil Group’s technology and team to Google demonstrates our commitment to the wearables industry by enabling a diverse portfolio of smartwatches and supporting the ever-evolving needs of the vitality-seeking, on-the-go consumer,” said Stacey Burr, vice president of product management, Wear OS by Google.

“Stocks that had been crushed on Chinese worries roared higher like this arrangement was already a done deal” despite the report being anonymously sourced, Cramer noted. “Even when we got contrary reports later in the session that perhaps there might be no deal, these stocks held onto most of their gains.” But to Cramer, host of “Mad Money,” the blindly positive moves signaled something concerning about investor sentiment on U.S.-China trade. “Now, there’s no doubt that investors want a deal wit

The stock market’s positive response to a report that U.S. officials were considering lifting tariffs on China to get a trade deal was telling, but it wasn’t necessarily good, CNBC’s Jim Cramer said Thursday.

“Stocks that had been crushed on Chinese worries roared higher like this arrangement was already a done deal” despite the report being anonymously sourced, Cramer noted. “Even when we got contrary reports later in the session that perhaps there might be no deal, these stocks held onto most of their gains.”

The action led the Dow Jones Industrial Average to lift itself out of correction territory, ending the day 163 points higher. The S&P 500 and Nasdaq Composite also climbed.

But to Cramer, host of “Mad Money,” the blindly positive moves signaled something concerning about investor sentiment on U.S.-China trade.

“Now, there’s no doubt that investors want a deal with China in the worst way — and I actually mean in the worst way, as in the worst way for our country,” he said. “The stock market doesn’t care if we get a good deal — it wants any deal so we can get back to business as usual. That’s why all the companies with big business in China saw their stocks U-turn and go higher.”

So, while the market’s optimism can make you money, Cramer wouldn’t try to build a strategy around trade talks, especially with all the conflicting reports.

“I think it’s a sucker’s game to try to predict anything that goes on in Washington,” he said. “It’s pure chaos down there right now.”

Still, the late-2018 breakdown left the market so undervalued that “it feels dangerous not to buy stocks” at these levels, even if their catalysts are “nothing to write home about,” Cramer acknowledged.

And while some may write this market moment off as confusing, he saw it as one of “clarity” and “rationality” as stocks inch their way back to normal.

“When you see this kind of positive action, you need to recognize what’s driving it. In the fourth quarter, stocks got way too cheap, and that overreaction to the downside has created incredible values that give investors a sense of certainty — they know they won’t be blown out if they buy something because there’s only so much much downside from these levels,” he explained. “When you have that sense of certainty, it’s very easy to pull the trigger and buy, which is why 2019 is turning out to be a much better year than many investors expected.”

Apple’s former retail chief, Ron Johnson, told CNBC on Wednesday that the tech giant’s stock is still a great bet for investors in the long run. A self-professed Apple “fanboy,” Johnson attributes his confidence to the company’s consumer franchise, leadership, cash balance, and great products. In August, Apple became the first U.S. company to reach $1 trillion in stock market value. Apple’s a great buy.” Leading Apple’s retail division from 2000 to 2011, Johnson designed what’s considered among

Apple’s former retail chief, Ron Johnson, told CNBC on Wednesday that the tech giant’s stock is still a great bet for investors in the long run.

“I can’t imagine a better buy for your portfolio for the next decade,” said Johnson, founder and current CEO of Enjoy, which aims to merge online convenience with personal shopping services for tech products.

A self-professed Apple “fanboy,” Johnson attributes his confidence to the company’s consumer franchise, leadership, cash balance, and great products. He said he owns the stock. “I’m long. I love Apple.”

However, shares of Apple, which has been in the hot seat in recent months due to slowing iPhone sales growth, is down about 12 percent over the past 12 months and off more than 30 percent since its all-time in October. In August, Apple became the first U.S. company to reach $1 trillion in stock market value. Apple’s current market cap is a far cry from that at around $733 billion.

One of the factors that appears to be pressuring iPhone sales is Apple’s battery replacement program. According to a well-connected Apple insider Tuesday, the company replaced 11 million iPhone batteries for $29 each during the length of offer, which started a year ago after user complaints led Apple to admit that it slowed down the performance of older devices. Apple had predicted that it would replace between just 1 million to 2 million batteries.

But Johnson pointed to a silver lining in the results of the battery program. “Those 10 million didn’t upgrade their phone,” he argued. “Next year, they’ll be ready, right? Apple’s a great buy.”

Leading Apple’s retail division from 2000 to 2011, Johnson designed what’s considered among the best retail store strategies in the world. Before Apple, he was a Target executive for 15 years. After Apple, he served as CEO of J.C. Penney for what turned out to be a disastrous 17-months, which saw shoppers reject his radical store and pricing changes and saw investors flee the stock in droves.

The surge stemmed in part from sharply better-than-expected earnings reports from Goldman Sachs and Bank of America, and partly from the “severe” selling that hit bank stocks in the fourth quarter of 2018, Cramer said. As such, “it is not too late to buy the banks,” Cramer argued. “Goldman’s tangible book value is $196 per share, just a buck below where the stock is currently trading,” Cramer said. The “Mad Money” host added that he hasn’t seen action this “absurd” and disconnected from reality

CNBC’s Jim Cramer says the stock market’s recent lift off its lows can be attributed to one key sector: the banks.

“When you look at this incredible nine-day run in the financial stocks, there’s really only one way to interpret it: the banks are leading this market’s charge out of the bear-den abyss,” he said Wednesday on “Mad Money” after investment giant Goldman Sachs’ stock posted its best trading day in 10 years.

The surge stemmed in part from sharply better-than-expected earnings reports from Goldman Sachs and Bank of America, and partly from the “severe” selling that hit bank stocks in the fourth quarter of 2018, Cramer said.

In that brief, but vicious bear market, the group saw stark declines, the most dramatic being Goldman’s plunge from $234 at its November highs to $151 at its lows. The drop was likely worsened by a scandal in Malaysia, which Goldman’s CEO addressed Wednesday. Even after its 9.54 percent surge on Wednesday, Goldman shares were trading at just $197.08.

To Cramer, that action is emblematic of what investors are just beginning to grasp.

“Investors, I think, have started to realize that the banks are literally — not figuratively, but literally — making more money than ever, and they’re doing so with less risk and fewer employees as technology has replaced tons of white-collar jobs,” he said.

As such, “it is not too late to buy the banks,” Cramer argued.

What makes him so sure? First, based on tangible book value, his favorite metric for valuing the big banks, a stock like Goldman’s is trading at an extreme discount, he said. Tangible book value refers to how much a bank would be worth if it shut down and completely liquidated its operations.

“Goldman’s tangible book value is $196 per share, just a buck below where the stock is currently trading,” Cramer said. “That is absurd. They’re making a fortune off of that book value, yet they’re almost getting no credit for it whatsoever.”

Bank of America, which has 26 million active users on its mobile app, might not be getting the credit it deserves, either, he said. Cramer argued that, with 1.5 billion app log-ins in the fourth quarter alone, Bank of America goes beyond being “the millennials’ bank,” because everyone with a smartphone is a potential digital customer.

“As I see it, this is a growth company that’s merely masquerading as a staid and boring bank,” he said.

The “Mad Money” host added that he hasn’t seen action this “absurd” and disconnected from reality in the bank stocks in decades.

“Frankly, we haven’t seen a moment like this — where the banks are making far more money than people believe — since we came out of the [savings and loan] crisis in the early ’90s,” he said. “Back then, many investors sold these stocks after what seemed like big moves off the bottom, only to realize not long after that new buyers were flocking to the group after months and months of underperformance.”

Those new buyers, Cramer said, “recognized that something fundamentally had changed: the banks had gotten better. The bank stocks ultimately soared to new heights, and I wouldn’t be surprised if we got a similar scenario this time.”

And if the financial sector, which represents about 20 percent of the S&P 500, can get its groove back, the broader stock market could see “some remarkable gains,” Cramer said.

“There’ll be plenty of people who say, ‘Finally, I’m back to even, time to go.’ I’m urging you to think the other way,” he told investors. “There are a lot of investors who’ll look at these runs and decide … they want in, and, honestly, I think they’re making the right call, not the exiters, although, ideally, of course, you want to get in ahead of these latecomers.”

Singapore’s export-driven economy is among the most vulnerable in the ongoing U.S.-China trade conflict, but major investors said its stock market could deliver attractive returns this year. “It’s very attractive and that’s one of the reasons why we’re actually overweight Singapore relative to other Asian equities,” Kelvin Tay, regional chief investment officer at UBS Global Wealth Management, said on Monday. Tay told clients at the UBS Wealth Insights forum that the bank actually has a bearish

Singapore’s export-driven economy is among the most vulnerable in the ongoing U.S.-China trade conflict, but major investors said its stock market could deliver attractive returns this year.

“It’s very attractive and that’s one of the reasons why we’re actually overweight Singapore relative to other Asian equities,” Kelvin Tay, regional chief investment officer at UBS Global Wealth Management, said on Monday.

Tay told clients at the UBS Wealth Insights forum that the bank actually has a bearish outlook on the Singapore economy. The bank expects the country’s gross domestic product to grow by 2 percent in 2019, down from last year’s estimated 3.3 percent and at the lower end of official forecast of 1.5 percent to 3.5 percent.

Singapore, a tiny but wealthy Southeast Asian country, relies heavily on exports to power its economy. Its exports of goods and services in 2017 were close to 200 percent of its roughly $300 billion GDP — among the highest globally, according to the World Bank.